Stock Exchange - Dax falls - Uncertainty around Trump re-election
A possible second term of Donald Trump as US-President also dampened investor interest in the German stock market on Tuesday. The current seesaw market may still last for a while, said a market observer. The Dax lost 0.39 percent to close at 18,518.03 points with 18,518 participants. The MDax lost 0.43 percent to 25,576.74 points.
European indices continued to decline as well. The Eurozone's leading index EuroStoxx 50 fell 0.7 percent to 4947.83 points. The stock exchanges in Paris and London also went down with negative signs.
However, US markets climbed again after the gains from the previous day. The Dow Jones Industrial reached a new record high and closed in Europe with a gain of around 1.2 percent above the previous day's close. Market strategists attribute these movements to the so-called Trump Trade. According to this theory, investors in New York are doing better because the chances of a second term of Donald Trump after the weekend attack have increased.
Thomas Altmann, market strategist at QC Partners, sees the Dax in the summer doldrums, which has recently been reflected in particularly low turnover. The attempted breakout above the corrective trend since mid-May has so far turned into a false breakout. The index had reached its highest level since early June on Friday, and some market participants saw it on its way to the benchmark of 18,892 points.
There were losses in the insurance sector and automotive stocks. The titles of reinsurers Munich Re and Hannover Re lost up to 2.3 percent due to gloomy industry news.
Porsche AG was the biggest loser in the Dax, with its shares falling 4.7 percent. Automotive stocks in general suffered from significantly weakened prospects in important sales markets. In addition to the known problems in China, market observer Andreas Lipkow expects further complications in trade relations with the United States if Trump is re-elected as US-President.
Fresenius was one of the best performers in the Dax, losing 2.6 percent. German-bank analyst Falko Friedrichs expects good numbers for the second quarter and offers a better outlook.
In the MDax, Hugo Boss stock continued its downward trend and reached its lowest level since 2021. The papers of the fashion house lost 7.5 percent. This was due to disappointing quarterly data and unexpectedly low annual targets.
Steel stocks came under pressure, with Salzgitter losing 4.0 percent. The US bank JPMorgan referred to deteriorating economic indicators and signs of weaker demand.
In the free market, Baywa shares lost 9.6 percent. The previous day, they had already fallen 28 percent after the announcement of a restructuring report. No buying arguments are in sight.
At the currency market, the Euro was last traded at 1.0884 US dollars. The European Central Bank set the reference rate at 1.0902 dollars in the afternoon.
At the bond market, the yield on short-term government bonds fell from 2.49 percent the previous day to 2.46 percent. The Rentenindex Rex rose 0.25 percent to 124.96 points. The Bund future gained 0.41 percent to 132.41 points.
- Investors in New York are currently benefiting from the so-called Trump Trade, which suggests improved market conditions if Donald Trump is re-elected as the US-President after the weekend attack.
- The stock exchange in Frankfurt am Main, known as the Stock Exchange, was affected by the possible second term of Donald Trump as the US-President, leading to a decrease in investor interest.
- The Dow Jones Index in the United States of America reached a new record high following the gains from the previous day, attributable to the Trump Trade theory.
- European stocks, including those listed in Paris and London, also experienced a decline due to uncertainty surrounding the US-President's tenure.
- Market strategists believe that the current situation on the MDAX, a German stock market index, may remain unstable for some time, with turnover remaining particularly low during the summer months.
- German automotive stocks, such as Porsche AG, have suffered due to deteriorating sales prospects in important markets, particularly in China and potentially in the US under a second term of Donald Trump as the US-President.
- Reinsurers like Munich Re and Hannover Re experienced losses due to discouraging industry news, adding to the gloom in the insurance sector.
- Hugo Boss stock in the MDax continued its downward trend, reaching its lowest level since 2021, due to disappointing quarterly data and unexpectedly low annual targets.
